Sustainable Finance Lab
INTEGRATING FINANCIAL INSIGHT INTO DECISION-MAKING AND ADVANCING IDEAS TO FOSTER MORE CAPITAL INVESTMENT INTO THE ENERGY TRANSITION
Cumulative investment in the tens of Trillions of dollars will be required to decarbonize the global economy. There is broad understanding that public capital can only provide a very small portion of such investment. The public sector needs to create vibrant enabling environments for private investment, and there is also ample room for the private sector to act on its own.
The Payne Institute brings vast experience from the financial industry, academia and the public sector. Through the Sustainable Finance Lab, we seek to collaborate across all three areas to bring a deeper and actionable understanding of the opportunities for financing sustainable energy and the energy transition. We will also advance ideas related to spurring investment, encompassing financial products, the roles of investors, markets, policy and regulation.
PAYNE FINANCIAL FLOW
Snapshots of trends and financial tools in the energy transition
- Unbundling Attributes to Reveal More Value
- Indonesia Navigates Energy Transition Planning
- VC’s Rotation to Emerging Verticals in 1H23
- When Governments of Developing Economies Get an Equity Stake
- Buyer Beware with Startup Carbon Offset Offerings
- Continued Growth in Companies Using Internal Carbon Pricing in 2022
- CDR Portfolio Option Introduced
- Insight Into the Higher Cost of Capital in Emerging Economies
- Credit Suisse Demise Opens Another Hole in Climate Financing
- VCM Pricing Stronger Than Standardized Contracts Suggest
Olympus deal is key first for RSG market
Payne Institute Program Manager Brad Handler writes about how the long-term deal signed by Olympus Energy marked an important evolution in the development of a market for environmentally responsible US natural gas. Olympus Energy, a private upstream and midstream natural gas developer, entered into a long-term agreement with natural gas marketing firm Tenaska Marketing Ventures to sell ‘responsibly sourced gas’ (RSG). August 8, 2023.
Rising Costs’ Impact on Renewable Power Generation
Payne Institute Program Manager Brad Handler and student researcher Mason Shandy write about how the inflationary pressures that have gripped the global economy over the last 18 months, along with central banks’ efforts to lessen them, are weighing on the economics of building new power generation. Despite recent evidence of some moderation in these inflationary pressures, it is reasonable to expect that they will persist for some time. These higher costs disproportionately impact development of variable renewable energy (VRE), such as wind and solar, and in emerging market (EM) economies. June 27, 2023.
A new attempt at building a carbon futures market
Payne Institute Sustainable Finance Lab Program Manager Brad Handler writes about how Climate Impact X is the latest operator to try to foster exchange-based trade in voluntary carbon credits. Singapore-based Climate Impact X (CIX) launched its CIX Exchange for the voluntary carbon market (VCM) in early June to some fanfare about the city-state’s carbon trading ambitions. It is the carbon industry’s latest attempt to foster the growth of exchange-based trading in the VCM, as well as of a futures business. June 27, 2023.
Zimbabwe’s attack on carbon offsets
Payne Institute Program Manager Brad Handler and Director Morgan Bazilian write about how Zimbabwe’s announcement that it is canceling all carbon offset contracts in its borders and demanding a larger government share of any new ones is wearily familiar to those who have experience with resource nationalization. But tearing up contracts can only set a bad precedent for developing economies seeking to attract investment that might benefit their communities. June 6, 2023.
Harnessing the VCM to retire orphaned oil and gas wells
Payne Institute Sustainable Finance Lab Manager Brad Handler writes about how the American Carbon Registry (ACR), a greenhouse gas registry, has released a methodology for creating carbon offset credits from plugging orphaned oil and gas wells. These offset credits will be the first of their type to be issued through a major registry for the voluntary carbon market (VCM). May 19, 2023.
Voluntary carbon markets’ growth challenges
Payne Institute Sustainable Finance Lab Program Manager Brad Handler writes about how the 20th anniversary of the US’ biggest carbon conference, North America Carbon World, was held last week and conference participants voiced concerns over public perception and difficulties integrating carbon instruments into broad investment portfolios. March 31, 2023.
Filling the hole Silicon Valley Bank left in the climate tech ecosystem
Payne Institute Sustainable Finance Lab Program Manager Brad Handler and Payne Institute Director Morgan Bazilian write about the Silicon Valley Bank playing a critical role in the climate tech industry, particularly for early-stage companies. The bank’s recent collapse will be felt even though its depositors will get their money back, as announced by Treasury Secretary Janet Yellen. March 15, 2023.
Change Gfanz to save it
Payne Institute Sustainable Finance Lab Program Manager Brad Handler writes about how investor alliance must reconcile push for decarbonisation with responsibility to maximise returns for clients. A widely circulated report in mid-January chastises Glasgow Financial Alliance for Net Zero (Gfanz) members for continuing to lend to coal and, oil and gas development. February 21, 2023.
Retiring Coal? The Prospects Are Brighter Than They Appear
Payne Institute Program Manager Brad Handler and Director Morgan Bazilian write about how as COP27 draws to a close, the conference is proving to be a disappointment for environmental advocates focused on eliminating the planet’s number one emitter: coal-fired power. In the tumult of international uncertainty, governments have looked to coal as a security blanket of sorts. Coal’s ability to deliver power 24/7 compares favorably to some renewable energy, like solar and wind, that is variable and, at least to some degree, unpredictable. November 17, 2022.
Accelerating Coal Plant Retirement
Payne Institute Sustainable Finance Lab Program Manager Brad Handler presented on how we can bridge the academic work with policy- and decision-makers to accelerate coal plant retirement. November 8, 2022.
Payne Institute Program Manager,
Sustainable Finance Lab, and Researcher
1600 Jackson Street, Suite 370